Are you paying more in rent than you would like? If so, the idea of adding another monthly bill isn’t a very attractive option. So it’s easy to dismiss renters insurance, thinking you don’t have anything worth insuring in the first place.
However, the best renters insurance goes beyond safeguarding personal belongings. It also provides liability insurance, temporary living expenses and more. All for around $10 bucks a month.
5 Reasons Why Renters Insurance Is Worth it
If you’re on the fence about renters insurance, it’s time to climb down. Here’s why renters insurance is worth it.
- Renters Insurance Is Cheaper Than Buying New Stuff
- Renters Insurance Can Help Pay Your Legal Costs After an Accident
- Renters Insurance Can Pay for Temporary Housing
- Renters Insurance Covers Minor Injuries to Others
- You Can Not Rely on Your Landlord’s Insurance
1. Renters Insurance Is Cheaper Than Buying New Stuff
So let’s address a renters insurance myth for the naysayers: You don’t own enough stuff to buy insurance.
You do. Think about your wardrobe, furniture, pots and pans, bicycle, laptop and all the things you rely on every day. What would you do if a fire wiped them out? Would you be able to afford to buy all new stuff? Even if you could afford it, would you really want to pay out of pocket?
If you’re not convinced, do a home inventory. It can be as simple as a written list or you could even take pictures or videos with your smartphone. A home inventory will give you a good idea of how much stuff you actually own and its worth.
Related: What does renters insurance cover?
2. Renters Insurance Can Help Pay Your Legal Costs After an Accident
Accidents happen. Like a guest tripping over your rug and getting hurt. Or maybe you’re reliving your glory years and accidentally kick a soccer ball through a neighbor’s picture window.
That’s where the liability portion of your renters insurance comes in. It covers accidental property damage and injuries to others. For example, if your dog bites someone, liability insurance can cover their medical expenses. It also pays for your legal costs, settlements and judgments if you are sued because of an accident.
If an accident happens and you are without liability insurance, you could be on the hook for medical expenses, property damage repairs and legal costs.
3. Renters Insurance Can Pay for Temporary Housing
Suppose a problem covered by your policy makes your rental unit uninhabitable. The additional living expenses portion of your renters insurance policy can cover expenses like hotel bills, restaurant meals and other services, like pet boarding or laundry services.
For example, if a pipe accidentally bursts and you can’t live in your home while your landlord makes repairs, you can tap into your ALE coverage to pay for temporary housing.
4. Renters Insurance Covers Minor Injuries to Others
Another overlooked aspect of renters insurance is the medical payments to others coverage. It’s typically used to cover small medical bills, no matter who is at fault for an accident. It’s usually sold in small amounts between $1,000 and $5,000.
For example, if your guest needs stitches after accidentally bumping their head on an open cabinet door, your medical payments to others coverage can pay for the trip to urgent care.
Read More: How Does Renters Insurance Work?
5. You Can Not Rely on Your Landlord’s Insurance
If a problem like a fire or theft occurs, you can’t make a claim against your landlord’s insurance to replace your personal belongings or pay for a hotel room. That’s because landlord insurance covers your landlord’s interest, such as the building structure and your landlord’s possessions, not yours.
Landlord insurance does cover accidental property damage and injuries to others, but that’s usually limited to accidents that happen in common areas. For example, if a guest hurt themselves on a staircase outside your apartment, that would typically fall under your landlord’s liability insurance.
Is Renters Insurance Required?
Renters insurance is not required by law, but a landlord might require you to have renters insurance as a condition of the lease.
Even if your landlord doesn’t require renters insurance, it’s still a good idea. Without it, you’ll have to pay out of pocket to replace belongings if stolen or damaged in covered problems, like a fire, and miss out on protection for accidental injuries or property damage to others.
How Much Does Renters Insurance Cost?
The average national cost for renters insurance is $125 per year, according to a Forbes Advisor analysis of renters insurance rates. That’s for $15,000 of personal property coverage, $100,000 in liability coverage and a $2,000 deductible.
Here’s a guide to how much renters insurance costs in your state.
Featured Renters Insurance Partners
1
American Family
$149
19 states
2
Lemonade
$160
28 states + DC
3
Erie
$182
12 states
How Do I Get Renters Insurance?
Here’s how to get renters insurance in five easy steps:
- Understand what’s covered. Renters insurance can be broken down into three main coverage types: personal property coverage, liability insurance and additional living expenses.
- Determine your coverage amounts. The next step is to figure out how much renters insurance you’ll need. Here’s where that home inventory will come in handy. You can adjust your additional living expense and liability coverage as needed. It’s a good idea to buy enough liability insurance to cover what could be taken from you in a lawsuit.
- Research renters insurance companies. The best renters insurance companies combine fair prices and good customer service. Make sure you also check for any available discounts.
- Compare renters insurance quotes. You can get free quotes at a renters insurance company’s website or by using a comparison site that can generate multiple quotes at once. If you prefer to speak to someone, an independent insurance agent can help you out.
- Apply for a policy. Once you’ve found a company that has the coverage you need and a price you’re comfortable with, it’s time to apply for a policy. You can typically apply for a policy on most insurance company websites. If your application is accepted, you can usually make your first payment and have coverage on the same day.
Find the Best Renters Insurance Of 2024
